Nike Strategic Analysis

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Transcript of Nike Strategic Analysis

Nike: A Strategic Analysis About Nike David FinkJunjie HuangMurtaza AmirPatrick Ettorre Portfolio of Brands Cole Haan Converse Inc. Hurley International, LLC Jordan Brand Nike Golf Umbro,LTD. ProductDiversity Athletic shoes Apparel Sports Equipment Made up approximately $2.7 billion of Nike, Inc.'s revenue! 1960 2000 1980 2002 March (cc) image by jantik on Flickr 1962 - Blue Ribbon Sports founded 1966- BRS opens first retail outlet 1971 - Nike brand and swoosh image are born 1978 - BRS officially changes name to Nike, Inc. Nike goes public 1985 - Nike signs Michael Jordan,premiers the"Air Jordan" Today 1990 - First NikeTown opens 1996 - Nike equipmentdivision created 2003 - Nike acquires Converse Inc. 2008 - Nike introducesFlywire and Lunarlite foam materials for shoes Corporate Culture Mission Statement To bring inspiration and innovation to every athlete in the world. Revised Mission Statement At Nike, our focus is to provide quality athletic footwear and apparel to athletes of all kinds. Our goal is to bring inspiration and innovation to every athlete in the world. As the market leader, our innovation fuels our passion. The latest technology allows us to create products superior to any in the market. Our devotion to creating the best products for all athletes be it man or woman, young or old, is what makes us the best.

Our employees receive the best amenities to foster creativity and excellence. We are committed to improving our processes for the betterment of our communities and to serve our customers as best as possible. Our competitive drive fuels our passion for continued creativity which will allow Nike to grow and sustain its course for a long time to come. Vision Statement To carry on his legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our shareholders. Internal Assessment The IFE Matrix Strengths & Weaknesses Explained Based on our weighting, the most pertinent strengths to Nike are as follows:

Current market share Corporate cultureProduct design and quality perception Based on our weighting, the most pertinent weaknesses facing Nike are as follows:

Heavy reliance on outsourced manufacturing processesSocial responsibility issues regarding outsourced processesHeavy reliance on oil, cotton, labor and air-freight costs External Assessment EFE Matrix Opportunities & Threats Explained Based on our weighting, the most pertinent opportunities for Nike are as follows:•Emerging markets with increasing disposable income like India and China•Rise in popularity of American sports in foreign countries (specifically China/Europe)•Rising segment of female athletes Based on our weighting, the most pertinent threats facing Nike are as flows:•Rising oil, cotton, labor and air freight costs globally•Public outcry against child labor/labor overworking/outsourcing•Fierce industry competition The CPM Based on our weightings, the most pertinent critical success factors to the sporting apparel and footwear industry are as follows:

Chairman of the Board of DirectorsStepped down as CEO and president in 2004 being replaced by William Perez, and then replaced by Mark Parker in 2006Age:74 Phillip H Knight Charlie Denson President of NIKE Brand .Starting as an assistant manager at Nike’s first retail store in Portland, Oregon in 1979.Charlie Denson is responsible for leading the strategy of NIKE Brand.Total Calculated Compensation:7.7 Millions Mark Parker President, CEO NIKE, INC. Parker Joined Nike in the year of 1979.Parker is responsible for the growth of NIKE, Inc.'s global business portfolio, which includes Cole Haan, Converse Inc., Hurley International LLC, and Umbro Ltd. Total Calculated Compensation: 11 Millions Leadership Evaluation